How K-beauty Evolved from a Viral Trend to an Economic Powerhouse
Suranjana Tewari, Asia Business Correspondent, Seoul, South Korea
Who would have thought that serums containing snail mucin—the very substance snails secrete—would become integral to skincare regimens worldwide? This phenomenon is not just a fleeting trend; it highlights the tremendous global impact of K-beauty. The journey of K-beauty from viral phenomenon to economic titan reveals a richly layered industry that has captivated consumers across the globe.
The Rise of K-beauty: An Economic Powerhouse
– Market Value: As of 2024, the domestic K-beauty market is valued at approximately $13 billion (£9.6 billion), with expectations for double-digit growth in certain segments.
– Global Influence: The popularity of K-beauty aligns with the Hallyu, or Korean Wave, which has propelled K-Pop and K-dramas into the global spotlight.
K-beauty brands have established dedicated sections in numerous global retailers—including Sephora, Boots, and Walmart—solidifying their presence. Remarkably, by the first half of 2025, South Korea outpaced France, traditionally known for its cosmetics, to become the world’s second-largest exporter of beauty products, trailing only the United States.
The Social Media Surge
A simple search for Korean skincare on platforms like TikTok, Instagram, or YouTube yields an overwhelming influx of content from influencers, many boasting hundreds of millions of followers. These influencers delve into:
– Product ingredient breakdowns
– Unboxing experiences
– Get Ready With Me videos featuring trending concepts like glass skin, sheet masks, and the beloved snail mucin.
Liah Yoo, a beauty influencer and founder of K-beauty brand Krave Beauty, notes the highly competitive environment: “Consumers are exposed to countless brands, and the market is saturated.”
The Engine of Innovation Behind K-beauty
At the core of K-beauty’s ascension lies its relentless innovation. New formulations emerge every few months, often designed to ignite online excitement. Concepts that once seemed niche—such as elaborate ten-step skincare regimens and unique ingredients like salmon sperm—are now everyday staples in beauty routines worldwide.
The instantaneous nature of social media allows Seoul-based launches to appear on international feeds almost immediately. However, concerns about the impact of beauty ideals loom large, as constant exposure to skincare content can exacerbate anxiety and compel excessive spending.
Kim Seung-hwan, CEO of Amorepacific, the country’s largest cosmetics company, acknowledges the risks: “We are aware that misuse of social media can incite backlash. Brands must find a balance in their online engagement.”
Challenges and Adaptations in the K-beauty Landscape
As K-beauty expands, Western multinationals have become increasingly intertwined. L’Oréal’s acquisition of a South Korean conglomerate that includes the brand Dr.G is just one example of this trend, highlighting the elevation of demand for effective, affordable K-beauty products.
Many of South Korea’s prominent beauty brands belong to chaebols, or powerful conglomerates. Amorepacific, for instance, commands nearly half of the domestic market, with a diverse portfolio that includes premium names like Sulwhasoo and mass-market brands such as Laneige.
Even with such clout, Amorepacific constantly seeks insights from smaller independent brands. “Learning from the founder and the CosRX team taught us innovative approaches to rapidly address consumer needs,” Mr. Kim explains.
Impressive Economic Performance and Future Prospects
In 2024, Amorepacific reported approximately $6.2 billion in product sales, while LG Household & Health Care, another major player, recorded $4.1 billion. The strength of the industry is further reflected in South Korea’s export figures, which saw a 15% rise in the first half of 2025, reaching a record $5.5 billion. The country is well on track to exceed $10 billion in annual beauty exports.
Understanding regional nuances is essential; preferences vary significantly by market. “In Japan, Korea, and China, the focus tends to be on flawless skin. In Europe, fragrance is paramount, and in the US, makeup holds sway,” Mr. Kim elaborates. Yet, changing trends indicate a growing Western interest in skincare, particularly in sun protection and healthy skin as consumer awareness of climate change rises.
Navigating a Competitive Future
K-beauty’s approximately 30,000 beauty brands thrive within a sophisticated industrial ecosystem, primarily supported by original development manufacturers (ODMs) managing research, formulation, and production for various labels.
Cosmax, a leading manufacturer, supplies products to around 4,500 brands, enabling rapid turnaround times—sometimes as quick as six months—from concept to market launch, a process that can take several years for many Western brands.
However, the rapid pace of innovation also means fierce competition, leading to thin profit margins and high business failure rates. Recent data reveals that over 8,800 cosmetics brands have shuttered in recent years. Liah Yoo notes, “South Korea has exceptional infrastructure for accelerated brand development, but sustaining a successful brand demands strong identity and differentiation.”
As consumer preferences shift towards transparency regarding ingredients rather than celebrity endorsements, the K-beauty industry must adapt. Influencer Mia Chen voices this sentiment: “We discuss ingredients more than ever. Consumers increasingly seek natural, side-effect-free solutions.”
The market is shifting as well; for the first time in 80 years, Amorepacific’s North American business surpassed its Chinese counterpart. The U.S. remains a crucial market, though tariffs on Korean imports have introduced some uncertainty.
Despite these challenges, the South Korean government remains a staunch supporter, designating K-beauty a strategic national asset and pledging assistance for manufacturing and export growth.
In conclusion, K-beauty’s remarkable evolution from a viral trend to an economic powerhouse stands as a testament to its innovative spirit and global appeal. As the industry continues to adapt to changing consumer behaviors and competitive dynamics, it is undeniably poised for continued success on the world stage.